Marvell Technology Inc (MRVL)

[SyndicateTwo]

I would normally agree with the point you're making, but McClellen's point is very interesting and differs from the 'going against the crowd' thinking. His point is that the Fed has put so much money since the 2000 recession into the system to save the economy, that money is now finding its way into stocks. It's always been a theory by the stock guys who always but heads with the real estate guys that this would eventually happen.

All this money originally found its way into real estate via easy money lending to anyone with a pulse. But now with real estate falling, that money is bailing out and finding a new home in stocks as there is no other place worthy of investing other than stocks.

Makes total sense and many in the stock world have been waiting for this. This might be one reason why the cycles don't matter right now because all these people now see this money finally coming into the market and they want to be in first.

You see, cycles work and are repeated because so many follow them, they become self fullfilling events. Just like most stock technical patterns. But when you got expectations like you do now, all things go out the window. However, eventually, even these kinds of markets will correct. And like I said, the more that are long, the harder the correction will be.

But that event might be far in the future. I see this playing out just like Moe said - a major rally going all the way through 2008 - and then another major bear like 2000-2002. Actually, probably just a return to the secular bear market and out of this cyclical bull.

Keep in mind, Moe says that the big gains in front of you are going to be in the Nasdaq, NOT the DOW.